The U.S. Dollar Index is +0.17% today, building on yesterday’s 0.11% gain that came after touching a 6-week low at 104.08. The dollar remains in a 4-week downtrend with support at 104.50 and lower at 104.00 preventing further losses. Friday trading and sparse activity on the economic calendar have limited volatility.
Today’s primary dollar gains against the G10 are +0.25% vs. CHF and +0.24% vs. JPY. Standout dollar losses against the majors include a 0.30% drop vs. BRL and a 0.25% drop vs. MXN.
This week’s PPI and CPI data leave the yield curve lower, most notably in the far tenors which are down an average of 0.10% compared to last Friday. The 10-year is -0.098% for the week.
Gold is completing its 2nd consecutive weekly advance, +1.06% today, +1.76% this week, and +4.35% over two weeks. A close today above $2,390.45 will mark an all-time record high.
Fed President Jerome Powell is scheduled to deliver a commencement speech this weekend, and while he is unlikely to specifically address the Fed’s rate policy outlook, his remarks will be closely watched nonetheless.
